Nanoco Share Discussion Threads

[andycapped] 06/11/2019 12:39

This was posted by 'Eskers' on LSE. Dated for September, long after cancellation of original Apple contract. Am I missing something?

[nigwit] 06/11/2019 10:13

Bagpuss

I find the words 'forced on the board' too severe. It could just have well been 'suggested' or mutual but FWIW I agree that it's is entirely possible that the major shareholders initiated the process, perhaps having first had their own discussions with potential suitors.

I understand where you're coming from generally though and your points aren't lost on me but the bit that doesn't fit is how major holders can force an outcome that only suits them and not smaller holders, like me. I've seen pre-packs in distressed situations (typically where there is debt) but these are normally forced by shorters, not holders and we know that none of the holders who disclosed yesterday are short, or even hedged.

I've also seen dilutions but these are usually preceded by selling down.

So I don't understand how your hypothetical scenario stacks up this time and would genuinely like to reconcile your view with my own so that I can.

[smithless] 06/11/2019 10:00

Well, the company does state it 'has entered into preliminary discussions with certain parties' so that would indicate that more than one party is interested. Nothing will happen without its major shareholders agreeing and that's where one will find clues as to whether or not an agreed bid is likely to succeed.

[activmojo] 06/11/2019 09:15

Various big companies trying to bring AR to market, Apple stopped the development because of other issues not the QD or manufacturering process. They may choose to stop anyone else aquiring the IP if it is protected by Nanoco or another company might like to aquire the IP
Endless possibilities but I do believe the review has been forced on the board, one of the Benifits of being on the main market.

[bagpuss67] 06/11/2019 08:37

Ps nigwit nice picture of materials going to the apple camera project engineer. Edit. Assume this is just better confirmation the lost contract was with apple?

[bagpuss67] 06/11/2019 08:24

We have to hope that 2 or 3 parties are seriuosly interested in the IP and possibly the staff to create a bit of competitive tension.

[bagpuss67] 06/11/2019 08:15

Welcome back Nigwit. I would love this to be clearly positive but it isn't.

I would urge you to spend a bit of time researching formal sales processes and the outcomes. Some achieve a solvent sale via a scheme of arrangement but many end up in insolvency. Sadly this process is synonymous with financial distress and will likley have been forced on the directors.

As to why people would accumulate shares as I have said repeatedly its to influence the restructuring process IMHO.

[nigwit] 06/11/2019 07:52

IMV yesterday's RNS sets out the strategy by which Nanoco will inform the corporate market who they are in sales discussions with in order to bring forwards a re-rate of their IP value. Normally identifying their sales prospects would be inside information but they will be able to disclose to interested buyers of the company once the NDA's mentioned in the RNS have been agreed.

This strategy will almost certainly have been sounded with the institutional investors, which may be why some of them have been increasing their exposures.

For the cynical among you (that's not me) it may explain why the directors last week elected to take their bonuses as share options instead of cash.

[paul planet earth] 05/11/2019 18:37

Further just because Nanocos board lack the commercial experience, leadership and funding does not mean to say bigger players whether already in the QE industry or looking to forge an entry could not turn things around..As others have highlighted theres no debt, brand new fully paid for tate of the art factory, very experienced team of QE developers,a huge and extensive intellectual property asset..These all have value and the current arket capitalisation is just peanuts at £42m.

[davr0s] 05/11/2019 18:25

Amazed this is still going - just. I bought around 150 and bailed out many years ago at a loss but much higher than today - became clear they didn't really know how to commercialise. Think IC tipped this even higher. Looks like a fire sale now - sorry for people that hung onto the story. What was that all about a few days ago when more options were granted where management must have known this announcement was coming

[davidw1] 05/11/2019 17:34

Whatever value there is should be flushed out in the coming months. Possibly a failed (or flawed) process but possibly not, so same applies to £value.

[ih_169538] 05/11/2019 17:13

What value can be created off a possibly failed production process...if all their patents rely on this process and the process is to expensive what value are the patents then ?

[davidw1] 05/11/2019 17:05

If we are to believe ME then NANO QD are ”the best” Crunch.

I suspect CFQD are a little more expensive than cadmium but the right outcome from RoHS would make that less important. However if Dow is not interested in some way then you could be right. But if they are interested then why no interest to date so as to avoid a bidding war?

[bagpuss67] 05/11/2019 17:02

All that is true but that may be exactly the point. This team failed to exploit the IP. Others may feel they could do better or would rather have control of it. There is still some hope that we may see say 20p IMHO

[howl01] 05/11/2019 16:56

Time has already told the value has it not. Many opportunities recent and in the past to license or take a stake in the company past up by all potentially interested parties. The comparison with QDV/Samsung is false. Samsung relied on QDV IP for their own development. Not so with Nanoco. Could be worth peanuts and CEO himself has zero faith which should give some indication. Nor is the BOD the most trustworthy. Should be held up as an example of an exceptionally badly run 'business'. Cash burn has been outrageous.

[ih_169538] 05/11/2019 16:49

If Dow isn't one of the bidders then its time to accept scaling snd cost wss an issue

[bagpuss67] 05/11/2019 16:49

Andycapped. This sort of decision to initiate an FSP is typically made by the people holding the purse strings sadly usually in a financial distress situation eg Bonds, banks or equity. LO likley said enough is enough on the equity cheques and we want to try the market to see what we can get out of this with

[andycapped] 05/11/2019 16:00

Not surprising they're going for a sale, the cash situation was growing ever more urgent with no signs of any contracts in the near term. Further cash raise,assuming the money was available would dilute the company to hell, and would only buy them a little bit longer with no order on the books.

One silver lining is that Samsung coughed up $70m for a much smaller patent portfolio when they purchased QD Vision back in 2016. Nanoco's IP is more significant IMO and much more extensive, so I can't see it being sold for buttons, but I think anyone that bought stock in the hay day of £1+ and hasn't averaged down during recent months may feel a cold wind.

Time will tell.

[botbot1202] 05/11/2019 13:37

Then why is the share price going up and why are bigger investors investing and why would the Analysts bother setting target prices.... because the company is undervalued. Only facts...
Now you could say yes, but no sales, a factory that is empty and no IPs in use.... and I would say.... money talks. It’s all about the potential not the here and now. Glaxo’s R&D is worth more on paper than Glaxos share price because they could find a cure for cancer tomorrow... that doesn’t mean that they have. Nano is no different I agree sales are needed but this company is not worthless.!

[howl01] 05/11/2019 13:06

True but Dreamland the preferred destination for many. Fundamental IP has an expiry date,'factory" worthless. No value here I'm afraid just failure.

[rathean] 05/11/2019 12:54

Dreamland. The bod has stated the business has failed, it's one substantial customer has canceled and this business has a repeated failure to sell its tech. The sale carrot is to fuel a dead cat bounce, the strategic review may very well see it delisted and or wound up with zero value to shareholders imo dyor ofc.

[bagpuss67] 05/11/2019 12:37

Worth looking at the evercore team based out of NY. Big Hitters I would say.